Mexico shifted from ISI to ______ policies in the 1980s.

Answer the following statement(s) true (T) or false (F)

1. Import-substitution industrialization is based on neo-liberal principles of reduced government protection of industries, fiscal austerity, and privatization. 2. Problems with ISI were emerging at the same times that economists and policy makers in the West were shifting from neoliberal to Keynesian ideas and becoming increasing supportive of the ability of governments to manage the market. 3. Developmental states usually follow neoliberal fiscal and monetary policy, keeping inflation low and their currencies stable and realistically valued vis-à-vis others. 4. According to Kaplan (2013), Latin American countries that relied more heavily on bonds to finance development maintained strong fiscal austerity than countries that relied more heavily on loans. 5. In countries with weak democracies and weak political parties, demands are based on patronage, which is likely to harm the business climate and discourages investment.

Because government corruption is difficult to measure directly, a student used citizen perceptions of corruption as reported in a survey as a variable, even though it is not an ideal measure. Perceptions of corruption in this case is an example of

a. A proxy measure b. An omitted variable c. A control variable d. An unmeasured variable